After Apple missed earnings expectations on Thursday, Microsoft became the world’s most valuable publicly-traded company on Friday, surpassing Apple in market value.
Apple stood at about $2.46 trillion at market close, while Microsoft reached nearly $2.49 trillion.
As a result of supply chain constraints, Apple’s fiscal fourth-quarter revenue missed Wall Street expectations. Despite Apple CEO Tim Cook’s estimates of a $6 billion revenue shortfall, the company expects worse supply chain issues in the December quarter.
Despite a 47% year-over-year increase in iPhone sales, sales fell short of analyst expectations. Sales of the iPhone 13 were only reported during the company’s fourth quarter.
On Tuesday afternoon, Microsoft also acknowledged supply constraints as it reported fiscal first-quarter earnings. However, the company issued a forecast for personal computers that easily exceeded expectations.
On the earnings call, Chief Financial Officer Amy Hood described Q2 as a strong demand quarter that will be constrained by supply. Nonetheless, she said, the market is still growing.
Revenue in Microsoft’s first fiscal quarter grew 22 percent year over year, beating expectations.
The first company to reach $1 trillion and $2 trillion market capitalization was Apple. Last year, it surpassed Saudi Aramco as the world’s most valuable publicly-traded company.
Microsoft last surpassed Apple in market cap in 2020 when the Coronavirus pandemic crippled supply chains. A major update to Windows in over five years led to it closing above a $2 trillion market cap for the first time in June.
In the year to date, Microsoft’s stock had risen nearly 48%, while Apple’s had risen almost 13%.
This article was originally posted on FX Empire
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